44-6804. Disclosures

511 words·~2 min read·/az/title-44/44-6804

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

For each rental-purchase agreement, a lessor shall disclose in the agreement, or as otherwise required in this section, the following items:

1. The frequency with which periodic payments are to be made, the dollar amount of each periodic payment and the total number and total dollar amount of all periodic payments necessary to acquire ownership of the property.

2. A statement that the consumer does not own the rental property until the consumer has paid the total amount necessary to acquire ownership.

3. A statement advising the consumer whether the consumer is liable for loss of or damage to the rental property, and, if so, a statement that this liability does not exceed the fair market value of the rental property as of the time it is lost or damaged.

4. A brief description of the rental property that is sufficient to identify the rental property to the consumer and the lessor, including an identification number, if applicable, and a statement indicating whether the rental property is new or used.

5. The cash price of the rental property.

6. The total of initial payments paid or required on or before consummation of the rental-purchase agreement or delivery of the rental property, whichever is later.

7. A statement that the total amount of payments does not include fees. All fees shall be separately disclosed in the rental-purchase agreement.

8. A statement advising the consumer that the consumer may exercise an early purchase option. The statement shall include a clear summary of the terms of the early purchase option and shall be accompanied by a statement or chart showing the amount required to exercise the consumer's early purchase option after each periodic payment is made pursuant to the rental-purchase agreement. A lessor may disclose the amounts required to exercise an early purchase option either by attaching to the rental-purchase agreement a statement or chart showing all early purchase option amounts if periodic payments are made as scheduled or by providing the consumer with a written statement of each early purchase option amount at the time each periodic payment is made.

9. A statement identifying the party responsible for maintaining or servicing the property while it is being leased and a description of that responsibility.

10. A statement that if any part of a manufacturer's expressed warranty covers the rental property at the time the consumer acquires ownership of the property, it shall be transferred to the consumer, if allowed by the terms of the warranty.

11. The date of the transaction and the identities of the lessor and consumer.

12. A statement that the consumer may terminate the rental-purchase agreement without penalty by voluntarily surrendering or returning the rental property, but any liability for past due rental payments and any damage to the rental property, reasonable wear and tear excepted, survive termination of the rental-purchase agreement.

13. Notice of the right to reinstate a rental-purchase agreement as provided in this chapter.

14. The amount and purpose of any payment, charge or fee in addition to the periodic payments.

15. The cost of rental.